BD, Nepal to relax provisions of energy trade, investment

Bangladesh and Nepal have decided to make 'easy' plans and provisions of the bilateral understanding on energy trade and investment through incorporating private sectors of the two countries in the Nepal's hydropower potentials.
In the second Joint Steering Committee (JSC) meeting held in Cox's Bazar on June 20, the two countries decided to work together to enhance cross-border energy cooperation and promote investment in 20 projects in Nepal's (which was identified by the Joint Technical Committee) hydro power in future.
Bangladesh has expressed interest to buy 9,000 MW of electricity from Nepal by 2040, according to the Power Division.

 "The second JSC meeting discussed four specific issues that includes (a) allowing corporate investment in hydro projects, (b) enhancing energy trade and investment (c) grid connectivity incorporating India as a party here and (d) increase cooperation in sharing knowledge in power efficiency programme and investment in renewable energy in Nepal," a senior official of Bangladesh Power Development Board told the daily Observer on Saturday.
During the meeting, the Bangladesh's side apprised the Nepal's delegation that Bangladesh has been eyeing to enhance energy cooperation, especially after the Power Trade Agreement (PTA) was signed with India in 2014 as India is a big party here to transmit electricity between the two countries.

"Following the PAT, the government has already committed to buy 500 megawatts of electricity produced by the Upper Karnali hydropower project, which is being developed by India-based GMR," an official said
Bangladesh, Nepal and GMR Group of India, have been working to materialize a 500-MW of electricity export to Bangladesh from Nepal's Upper Karnali Hydropower Project for the last seven years. Meanwhile, Dhaka and Kathmandu have already signed a memorandum of understanding (MoU) for cooperation in the development of the power and energy sector.

Bangladesh also signed a preliminary contract with an Indian company, GMR Energy, to import electricity from its power project in Nepal.
Senior Secretary of the power division Dr Ahmed Kaikuas led the Bangladesh team while Nepalese Ministry of Energy, Water Resources and Irrigation Secretary Dinesh Kumar Ghimire led the Nepalese team.

The two countries agreed to focus on electricity generation, development of hydroelectricity, cross-border transmission lines, development of efficient human resources in the hydroelectric sector, promotion of government-to-government and private sector investments, grid connectivity, power efficiency and investment in renewable energy, among others, the official added.
As per decision, these committees will have to meet twice in a year and discuss and take forward the issues related to cooperation in the power sector between the two nations.